Financial Awareness Quiz 86 –

Que. 1

Confederation of Indian Industry (CII) has signed a Technology Partnership MoU with ____ Singapore trade and business agencies.

1.

3

2.

4

3.

7

4.

8

5.

2

Solution

Answer: For the first time, Confederation of Indian Industry (CII) has signed a Technology Partnership MoU with two Singapore agencies International Enterprise (IE) Singapore and the Singapore Business Federation (SBF) to promote expertise in expanding businesses. It is a step in the right direction to building a stronger partnership for expanding businesses.

The Telangana Government has signed a Memorandum of Understanding (MoU) with NABARD for a loan of Rs. ____ crore loan.

1.

889

2.

874

3.

861

4.

802

5.

893

Solution

Answer: The Telangana Government lead by K. Chandrashekar Rao signed an Memorandum of Understanding (MoU) with NABARD for a loan of Rs 874 crore. This loan will be used for Horticulture Development Corporation to cover 3.15 lakh acres under Micro Irrigation scheme for 2016-17 and 2017-18.

Dish TV has signed a partnership with which bank for digital payments?

1.

SBI

2.

PNB

3.

ICICI

4.

BoB

5.

Yes

Solution

Answer: Direct-to-home operator Dish TV has joined hands with India’s largest public sector lender ICICI bank for digital payments. The Zee Entertainment groups arm’s initiative will enable customers to do recharge through unified payment interface (UPI) transactions. The move will further push the customer base towards digital economy and also aid Dish TV joins hands with ICICI Bank for digital payments customers with or without Internet access to recharge conveniently.

The legal tender character of the bank notes in denominations of Rs. 500 and Rs.1000 issued by the Reserve Bank of India till November 8, 2016 stands withdrawn is known as ______.

1.

MMID

2.

ISBN

3.

SBN

4.

All of these

5.

None of these

Solution

Answer: The legal tender character of the bank notes in denominations of Rs. 500 and Rs.1000 issued by the Reserve Bank of India till November 8, 2016 stands withdrawn is known as Specified Bank Notes(SBN)

_________ has been promulgated by the President of India to provide for cessation of liabilities on the Specified Banknotes and for connected/incidental matters and comes into effect from December 31, 2016.

1.

RBI Act, 1934

2.

Specified Bank Notes (Cessation of Liabilities) Ordinance, 2016

3.

Negotiable Instruments Act, 1881

4.

All of these

5.

None of these

Solution

Answer: Specified Bank Notes (Cessation of Liabilities) Ordinance 2016 has been promulgated by the President of India to provide for cessation of liabilities on the Specified Banknotes and for connected/incidental matters and comes into effect from December 31, 2016.

______ occurs when the market price of the underlier of an option contract at the time of the contract's expiration is close to the option's strike price.

1.

Pin Risk

2.

Credit Spread

3.

Exercise

4.

Volatility

5.

Strike Price

Solution

Answer: Pin risk occurs when the market price of the underlier of an option contract at the time of the contract's expiration is close to the option's strike price. In this situation, the underlier is said to have pinned. The risk to the writer (seller) of the option is that they cannot predict with certainty whether the option will be exercised or not. So the writer cannot hedge his position precisely and may end up with a loss or gain. There is a chance that the price of the underlier may move adversely, resulting in an unanticipated loss to the writer. In other words, an option position may result in a large, undesired risky position in the underlier immediately after expiration, regardless of the actions of the writer.

Solution

______ is a business that functions without the threat of liquidation for the foreseeable future.

1.

Materiality

2.

Revenue recognition

3.

Fair Value

4.

Going Concern

5.

Historical cost

Solution

Answer: A going concern is a business that functions without the threat of liquidation for the foreseeable future, usually regarded as at least within 12 months. It implies for the business the basic declaration of intention to keep running its activities at least for the next year, which is a basic assumption to prepare financial statements considering the conceptual framework of the IFRS. Hence, the declaration of going concern means that the entity has neither the intention nor the need to liquidate or curtail materially the scale of its operations.

Solution

The Institute of Cost Accountants of India (ICAI) is headquartered in _______.

1.

Mumbai

2.

Kolkata

3.

New Delhi

4.

Bengaluru

5.

Chennai

Solution

Answer: ICAI is headquartered in Kolkata. It was established on 28 May 1959. The ICAI is a Founder Member of the International Federation of Accountants (IFAC), Confederation of Asian and Pacific Accountants (CAPA) and South Asian Federation of Accountants (SAFA)